OECD report shows progress on fair international tax system

8 years ago - Published in Finance, Fiscal & Legal

International tax systems are making progress in becoming fairer and more effective, a report led by OECD Secretary-General Angel Gurría has concluded.
In the report compiled ahead of the G20 summit in Hamburg this weekend, Gurria said the improvement of tax systems in global economies has been a major achievement of the group of states.

The OECD says over 60 jurisdictions will have activated close to 2,000 bilateral relationships for the automatic exchange of common reporting standard (CRS) information, including all 50 jurisdictions committed to undertaking first exchanges in 2017. As a result of this initiative 500,000 people have disclosed offshore assets, and around €85bn (£74.6bn) in additional tax revenue has been identified as a result of voluntary compliance mechanisms and offshore investigations.

The OECD says more than 80% of those committed jurisdictions have already put in place both the domestic and international legal frameworks required to deliver on the commitments made, and financial institutions are already collecting the information to be exchanged.

Tax issues have been a key priority of the G20 since its inception, and 2017 is the year of implementation," Mr Gurría said in a statement.
"In the midst of the backlash against globalisation, we need to deliver on an agenda of inclusive growth. The work of the G20 and the OECD to repair and improve the international tax system so everyone pays their fair share remains one of the most important responses to these challenges, as well as one which is having a concrete impact."

Implementation also continues on measures to reduce tax avoidance by multinational enterprises under the G20/OECD Base Erosion and Profit Shifting (BEPS) Project, which is being supported by 101 countries and jurisdictions.

The leaders of the world’s 20 biggest economies will meet in the German city this weekend to discuss a variety of issues, including topics such as climate change, international trade and security.